PoliticalEconomyofUKNetZeroEnergy

Net zero transitions around the world, including in the UK, have complex implications for financial, corporate and household actors and are therefore prone to social tensions.

UK political, corporate and public energy opinions are changing, whilst new ideas and networks that can either reproduce or disrupt energy incumbency are emerging. This project analyses the political economy of low emissions change in the UK across three stages:

1. Map out interests, ideas, and conflicts in key areas for UK energy policy, such as the response to energy crisis, the phase out of gas, and a green industrial policy
2. Analyse how combinations of interests and ideas work for and against meeting net zero goals
3. Develop recommendations, at a time of potential political change, for strategies that anticipate and counter opposition and strengthen coalitions for bolder action.

This project will be codeveloped with the Public Engagement Observatory and UKERC research on Affordability, Justice and Economic Impacts, to research decentralised actors and strategies for responding to contestations of net zero policies, and our Responsive Research to respond to changing policy discourse.

Focus areas to include:

• Political economy of green industrial policy. Industrial strategy has made a revival across the world, and the UK has a new strategy in 2025. Like many other countries, this has a strong green element, with a focus on clean energy technologies. But green industrial policy in practice faces political economy constraints. This focus area looks at the political economy factors that are shaping UK green industrial strategy, and the institutional factors that will affect the UK’s ability to deliver successful policy. Lessons for the UK would be an input to roundtable discussions involving industry, unions, and government. There are possible synergies with the Decarbonisation in Dispersed Industry project in our Delivering Energy Infrastructure research.
• Political economy of crisis response: This area will focus on the UK’s response to the energy crisis following Russia’s invasion of Ukraine. We will assess the role of different industry groups, NGOs, think-tanks, and the media in debates as well as alternative policies not pursued. Combined policy, political and media strategies for strengthening the resilience to net zero commitments under external shocks would be developed.
• Political economy of gas interests: The gas industry remains an important lobby in the UK but is in long-term decline and evolving in terms of ownership and control, whilst clean energy competitors are emerging. This area would assess the changing role, methods, and ideas of the energy industry in the transition to net zero, with a focus on heat policy.